We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arista Networks (ANET) Outperforms Broader Market: What You Need to Know
Read MoreHide Full Article
Arista Networks (ANET - Free Report) closed the most recent trading day at $326.75, moving +0.61% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.45%. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq gained 0.84%.
Coming into today, shares of the cloud networking company had lost 4.01% in the past month. In that same time, the Computer and Technology sector lost 0.98%, while the S&P 500 gained 2.54%.
Market participants will be closely following the financial results of Arista Networks in its upcoming release. The company is predicted to post an EPS of $2.08, indicating a 13.66% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.75 billion, indicating a 16% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.24 per share and revenue of $6.8 billion, which would represent changes of +18.73% and +16.07%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Arista Networks is carrying a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 39.39 right now. This indicates a premium in contrast to its industry's Forward P/E of 21.32.
It is also worth noting that ANET currently has a PEG ratio of 2.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ANET's industry had an average PEG ratio of 2.29 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 16, positioning it in the top 7% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arista Networks (ANET) Outperforms Broader Market: What You Need to Know
Arista Networks (ANET - Free Report) closed the most recent trading day at $326.75, moving +0.61% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.45%. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq gained 0.84%.
Coming into today, shares of the cloud networking company had lost 4.01% in the past month. In that same time, the Computer and Technology sector lost 0.98%, while the S&P 500 gained 2.54%.
Market participants will be closely following the financial results of Arista Networks in its upcoming release. The company is predicted to post an EPS of $2.08, indicating a 13.66% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.75 billion, indicating a 16% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.24 per share and revenue of $6.8 billion, which would represent changes of +18.73% and +16.07%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Arista Networks is carrying a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 39.39 right now. This indicates a premium in contrast to its industry's Forward P/E of 21.32.
It is also worth noting that ANET currently has a PEG ratio of 2.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ANET's industry had an average PEG ratio of 2.29 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 16, positioning it in the top 7% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.